Abstract

Today the state-owned companies (SOC) are encouraged to go public.
Poor performa nce of SOCs is the reason the government to privatize SOC.
Privatization is involvement of private capital in the capital structure of listed
companies so the fina ncia l performa nce can be affected directly by the investor
through market mecha nisms. Problems that ma y arise is whether the state
company that go public also perform earnings ma nagement ahead of the IPO.
The purpose of this research to prove whether the SOCs perform earnings
ma nagement ahead of the IPO and show whether there is a decrease in short-term
performa nce of SOCs. Statistica l analysis methods used were one-sample test to
test the decline in stock performa nce and paired sample tests to test the decline in
fina ncia l performa nce.
The results of this research indica te that almost SOCs perform earnings
ma nagement. In addition the short-term performa nce of SOCs did not decrease .
This indica tes that investors tend to notice the earnings information in assessing
the company.